Shares of Cemex (CX) were climbing over 3% during midday trading on Tuesday after Morgan Stanley upgraded the stock to "Overweight" from "Equal Weight" with a price target of $11.

Morgan Stanley analysts Nikolaj Lippmann and Lillian Starke argue three main reasons for the upgrade today. 

The first is that Cemex is deleveraging and could recover investment-grade status by late this year or in 2018.

Second, the risks to the peso have subsided. 

Finally, hopes for a large infrastructure spending package and recovery of drilling activity in the U.S. should come as "option value" for the company. 


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